[ Nippon Keidanren ] [ Policy ]

Outline of Proposal on Pension System Reform for 2004


September 10, 2003

Nippon Keidanren
(Japan Business Federation)

I. The Pension System: Problems and the Path to Solution

The Trinity Reform and Expansion of Private Pension Systems

[Problems]
  1. Increased burden on working generations
  2. Widening of inequality gap between generations
  3. Hollowing out of the National Pension Fund system

[Path to Solution]
Public pensions
  1. Restrict increases in premium rates
  2. Limit benefits
  3. Convert to basic pension based on indirect taxation
Private pensions
  1. Expand support for self-help

[Objectives]
  • Restoration of confidence in the pension system
  • Elimination of concern about the sustainability of the pension system
  • Preservation/boosting of socioeconomic activity

II. Major Necessary Reforms

(1) Public Pension = Promotion of Trinity Reform

  1. Premium burden --> Control of rate increases and implementation of fixed rate system
  2. Limit benefits --> Suppress to 20% level over a set period
  3. Reform basic pension system --> In the future, convert to basic pension based on indirect taxation (application of consumption tax revenues)
    [Reforms for the immediate future]

(2) Private Pensions --> Expansion of tax-related support measures


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